c sc Puned Book Show Me How Calculator Printem Niland Company Machining Department Monthly Production Budget Wages Utiles $806,000 57,000 95,000 $958,000 Depreciation Total The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows: Amount Spent Units Produced January 9904,000 87,000 February 863,000 79,000 March 823,000 71,000 The Machining Department supervisor has been very pleased with this performance because actual expendtures for January March have been significantly less than the monthly static budget of 958,000. However, the plant manager believes that the budget should not remain foxed for every month but should "hex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows: Wages per hour $17 Utility cost per direct labor hour $1.2 Direct labor hours per unit Planned monthly unit production 94,000 a. Prepare a flexible budget for the actual units produced for January February, and March in the Machining Department. Assume depreciation is a fed cost. If required, use per unit amounts carried out to two decimal places Niland Company Machining Department Budget For the Three Months Ending March 31 January February March Next > Check My Work R e sessionLocaloradnorogresseta se Calculator Print om Show Me How Direct labor hours per unit Planned monthly unit production 94,000 of .. Prepare a exibe budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation required, use per un amounts carried out to two decal places Niland Company Machining Department Budget For the Three Month Feding March 31 February Units of production Wages Uutis Depreciation Supporting calculations: Units of production Hur ser unit Total hours of production Wages per hour Total wages Total hours of production Ut couper hour Total utilities Check My work Next > vel of production show was te and depreciation Leaming Objective 2. Learning Objective 4. b. Compare the flexible budget with the actual expenditures for the first three months. January February March Total flexible budget Actual cost Excess of actual cost over budget What does this comparison suggest? The Machining Department has performed better than originally thought. The department is spending more than would be expected